1.4 Million Jobs Could be Lost in 2020: Banxico

In the midst of a pandemic that sparked not only a health crisis in the country but also an economic one, job losses have become part of the daily news. This week, Mexico’s central bank (Banxico) said it estimates that at least 800,000 jobs will be lost in 2020 although the number could rise to 1.4 million. In its Quarterly Inflation Report, Banxico changed its employment estimates for the rest of this year, which before the pandemic hit were at 440,000 and 540,000 new jobs.

Now, Banxico set two alternative scenarios. In the worst-case scenario, 200,000 additional jobs will be lost, while in the best-case scenario only 400,000 will be created. Banxico also cut its economic growth forecast yesterday and set three different scenarios for Mexico’s economy. In the best-case scenario, GDP will contract 4.6 percent in 2020, its worst decline since the 2009 world crisis. In the worst-case scenario, the decline will be 8.8 percent, an unregistered level since 1932 when it fell more than 14 percent. In the third scenario, GDP will decrease by 8.3 percent.

More news below:

• According to data from IMSS, at least 4,270 employers registered in the institution have requested an agreement to defer payments of the employer-employee quota.

• This week, UN-Habitat published a report projecting that the Mayan Train will create almost 1 million jobs in the southeastern region of Mexico by 2030.

• SERVIAP, an international PEO, believes that local market knowledge is crucial for hiring services, said its Managing Director and Co-founder Víctor Anaya in an interview with Mexico Business News.